Professional Documents
Culture Documents
2 Competitive Advantages
◆Why is one corporation capable of achieving a higher performance than others?
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Lecture Notes Vol. 2 for Management Strategy, 2006
・Situation where an outer power constituting a barrier to achieving one’s objectives is weak
-Small number of competitors
-Being protected by laws and regulations
-Friendly relations with customers and suppliers, etc.
Large
大
Emphasis on environ-
mental環境の魅力重視
attractiveness
Attractiveness level of business
事
業
環
environment
境
の
魅
力
度
Emphasis on organizational
組織の能力重視
capability
大
Large
小
Small
Relative capability/competitiveness
自社の相対的な能力・競争力 of own firm
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Lecture Notes Vol. 2 for Management Strategy, 2006
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Lecture Notes Vol. 2 for Management Strategy, 2006
(2) Rent by Organization’s Outer Force (Positioning) and One by Its Inner Force (Resource/
Capability)
◇Positioning is a strategy to acquire competitive advantages by locating a firm in an attractive
industry/environment
→Positioning is a strategy to pursue Monopoly Rent.
But the source of Rent is not limited to this.→Strategy to pursue another Rent?
◇Fundamental Assumptions
-Heterogeneity of resources
A corporation is a bundle of resources, and a different corporation possesses another
different bundle of resources.
-Fixedness of resources
Certain kind of resources takes high cost to imitate, or its supply is inelastic.
◇Variety of Resources
-Financial resource
-Material resources: factories, facilities, locations
-Human resources: managers, workers, technicians
-Organizational resources: administration system, corporate culture
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Lecture Notes Vol. 2 for Management Strategy, 2006
◇Value:
Is this resource useful in responding to environmental opportunities and threats?
◇Rareness:
Have competitors already possessed this valuable resource?
◇Imitability:
If a firm not possessed of this resource tries to obtain it, how much cost does it need to pay?
Eccentric Equivalent x
x Sustainable advantage
Rare
Temporary advantage
Foresight
3.2.1 Value
◇Resource’s “value” is key.
◇Change in value
-While resource does not change per se, its value can change depending on social/economic
conditions.
-Consumer preference, industrial structure, technology
-Oil shock: Change in preference from big cars to small ones
-From vacuum tubes to transistors, IC
-Liner bulk container: Change in the loading technology
-Information technology: From hard to soft, services
◇Corporate response
- Procurement/accumulation of new resources
-New utilization of conventional resources: Related-type diversification
3.2.2 Rareness
◇In case certain resource is rare, one can at least gain a temporary competitive advantage.
◇Information system itself often comes to be imitated. (low rareness)
-As supplied by vendors in package
-POS is easy for imitation.
-ATM network in banks
-ERP package (SAP)
3.2.3 Imitability
◇Possessed of resources that are valuable, rare, and hardly imitable (high cost of imitation), a
corporation can obtain the sustainable competitive advantages.
◇Direct imitation
-A firm’s certain competitive advantage sustains when a cost required to imitate certain resource
is higher than the one this firm at an advantageous position had to pay for obtaining the same
resource.
-“Time compression diseconomy”
Law of diminishing returns: outcome/input factors
Education, R&D, brand awareness
◇Substitution
To use a substitute resource so as to attain the result similar to that of a firm in an advantageous
position
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Lecture Notes Vol. 2 for Management Strategy, 2006
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Lecture Notes Vol. 2 for Management Strategy, 2006
Environmental Change
Foresight Luck
(Entrepreneur) Pioneering Opportunity
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Lecture Notes Vol. 2 for Management Strategy, 2006
Atanasoff
「ABC Computer」(1939),
Mainframe computer IBM (1953)
Eckert-Mauchly
「ENIAC/UNIVAC」(1946)
IBM-PC (1981),
MITS Altair 8800 (1975),
Compaq (1982),
Personal computer Apple II (1977),
Dell (1984),
Radio Shack (1977)
Gateway (1985)
MS-DOS (19981),
OS for PC CP/M (1974)
Microsoft Windows (1985)
Spreadsheet software
Visicalc (1979) Lotus1-2-3 (1983)
for PC
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Lecture Notes Vol. 2 for Management Strategy, 2006
Source: Fujimoto, Takahiro (2003), Capability Building Competition, Chuokoroan Shinsha; Diagram
2-3 touched up by Writer
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